Fifth Circuit Judge Grills SEC on Power Over Proxy Ballots (1)

SEC influence over which shareholder proposals are placed on ballots for company annual meetings faced sharp questioning from a federal appeals court judge Tuesday.

Judge Edith Jones of the US Court of Appeals for the Fifth Circuit raised concerns with how the Securities and Exchange Commission advises companies on whether they can block shareholder resolution votes. Jones—a Republican appointee—asked the most questions among the three judges hearing oral arguments in a corporate and conservative challenge over the SEC’s handling of the proposals.

The case stems from SEC guidance backing Kroger Co. efforts to stop consideration of a conservative group’s anti-discrimination ...